I am still amazed by the fact that when I called a bear market under Dow Theory rules, nobody noticed or even commented on the bear signal. I found this both mystifying and unprecedented. Either today's analysts are completely ignorant of Dow Theory -- or today's analysts are so confident, complacent and optimistic that they could not even consider that the tide had changed from bull to bear. Thus, we find the 'experts' still recommending stocks to be purchased -- this despite the Dow Theory bear market signal.

One very bright lady analyst, Meredith Whitney, became famous by warning that Citicorp would have to cut its dividend. Her bearish call was so disbelieved and hated that it landed her a spot on TV's 60 Minutes and on the cover of Fortune magazine. Later, Meredith created another round of disbelief and anger when she predicted a coming disaster in muni bonds. Meredith stated that after her Citi call, she actually received death threats. Meredith later quit her job, and formed her own research company.